Analysis of transactions and tips for trading EUR/USD
The test of 1.0650 occurred when the MACD line was just starting to move downwards, which was a good signal to sell. As a result, the pair fell by more than 25 pips. No other signals appeared for the rest of the day.
EUR/USD fell on Wednesday because Germany's inflation data was in line with expectations and IFO's report on business environment and present situation were worse than forecasts. The Fed's minutes also had a negative impact on euro in the afternoon.
Today, there will be a report on EU consumer prices, where a year-to-year increase is expected. This may help euro rally despite the bear market. Regarding the US statistics coming out in the afternoon, some could be bad for dollar, such as the GDP data for Q4 and the initial jobless claims, which are expected to show some growth. The speech of FOMC member Raphael Bostic is unlikely to lead to pressure on the pair.
For long positions:
Buy euro when the quote reaches 1.0630 (green line on the chart) and take profit at the price of 1.0662. Growth will occur if inflation data from the eurozone exceeds expectations. However, make sure that when buying, the MACD line is above zero or is starting to rise from it. Euro can also be bought at 1.0605, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0630 and 1.0662.
For short positions:
Sell euro when the quote reaches 1.0605 (red line on the chart) and take profit at the price of 1.0574. Pressure may return if there is no reaction to the inflation data. However, make sure that when selling, the MACD line is below zero or is starting to move down from it. Euro can also be sold at 1.0630, but the MACD line should be in the overbought area as only by that will the market reverse to 1.0605 and 1.0574.
What's on the chart:
The thin green line is the key level at which you can place long positions in the EUR/USD pair.
The thick green line is the target price, since the quote is unlikely to move above this level.
The thin red line is the level at which you can place short positions in the EUR/USD pair.
The thick red line is the target price, since the quote is unlikely to move below this level.
MACD line - when entering the market, it is important to be guided by the overbought and oversold zones.
Important: Novice traders need to be very careful when making decisions about entering the market. Before the release of important reports, it is best to stay out of the market to avoid being caught in sharp fluctuations in the rate. If you decide to trade during the release of news, then always place stop orders to minimize losses. Without placing stop orders, you can very quickly lose your entire deposit, especially if you do not use money management and trade large volumes.
And remember that for successful trading, you need to have a clear trading plan. Spontaneous trading decision based on the current market situation is an inherently losing strategy for an intraday trader.